CC Debt Reduction to Increase Mortgage Scores

[DaMajor]

Best use of $8K for debt reduction improving mortgage scores.   I have about 10K in unused CL with 0 balance in 3 other accounts.  Few baddies dropping off in next 8 months as well but looking to buy a house in next few months.  I've submitted EE on one account within 6 months awaiting results.

Thanks for your tips!

Current 8:  EQ 693 EX 672 TU 673

Current 542:  EQ 656 EX 616 TU 629

Chase	7500	7000
Capital One	5000	4912
Discover	2800	2684
Sams Club	1200	1066
Sams Club MC	2500	2266

[Mortgage-Specialist]

For the most accurate answer, you would need the use of a credit simulator. It will verify the best way to pay those off that will give you the highest credit score potential 

[ShanetheMortgageMan]

Mortgage scores take into consideration each card's utilization along with the total utilization, so probably would get the most bang for your buck by paying off Discover, Sams Club and Sams Club MC.  @Mortgage-Specialist is correct though that a credit simulator could give you a more accurate answer.  Another way to help the scores is to ask for credit limit increases to reduce the utilization percentage.

[RSX]

here is what i would do - i spent a bit more than the $8k - $8253 for the paydown

this will accomplish multiple goals

get all CCs out of the 90% usage bracket

get 2 CCs fully paid off - now you will have 3 will a balance and 5 at Zero balance

it will move the remaining 3 CC's into better util % - 1 below 50% - 2 below 67%

i think you will see a solid bump with this paydown - good luck

(i don't trust the simulators so i go with what i have learned on this forum instead) - it is possible i dont have access to any GOOD simulators of course

Current	Chase	7000	7500	0.93333
	Cap1	4912	5000	0.9824
	Disco	2684	2800	0.95857
	Sams	1066	1200	0.88833
	Sams MC	2266	2500	0.9064
Proposed	Chase	5025	7500	0.67
	Cap1	3350	5000	0.67
	Disco	1300	2800	0.46429
	Sams	0	1200	0
	Sams MC	2500	0
	New Total	9675
	Paydown	8253
			Total
	17928	8000	9928

[DaMajor]

Thanks for all the input.

I ended up taking the two largest down to about 75% and the rest to zero balance.   That should have a positive impact..will report later how much.

Takes my overall percentage down to 36%.   I have 4 baddies left, one came off today with a Transunion EE and I expect another off next month with EE.   The other two are eligible in April for EE so should be clean going forward.

---

@RSX wrote:

here is what i would do - i spent a bit more than the $8k - $8253 for the paydown

this will accomplish multiple goals

get all CCs out of the 90% usage bracket

get 2 CCs fully paid off - now you will have 3 will a balance and 5 at Zero balance

it will move the remaining 3 CC's into better util % - 1 below 50% - 2 below 67%

i think you will see a solid bump with this paydown - good luck

(i don't trust the simulators so i go with what i have learned on this forum instead) - it is possible i dont have access to any GOOD simulators of course

Current	Chase	7000	7500	0.93333
	Cap1	4912	5000	0.9824
	Disco	2684	2800	0.95857
	Sams	1066	1200	0.88833
	Sams MC	2266	2500	0.9064
Proposed	Chase	5025	7500	0.67
	Cap1	3350	5000	0.67
	Disco	1300	2800	0.46429
	Sams	0	1200	0
	Sams MC	2500	0
	New Total	9675
	Paydown	8253
			Total
	17928	8000	9928

---

[DaMajor]

After 2 days and a EE baddie removal:

Score 8:  EQ 693 TU 691 EX 674

Score 5 4 2:  EQ 670. +14    TU 696. +63   EX 617 +1

That moves my middle score to 670 instead of 629

Very pleased and not all payments are reporting yet...will update again soon..have no clue why TU moved the most..

[DaMajor]

FICO 8 UPDATES:

EQ 695. TU 692. EX 693

I have never seen them this close.  Mortgage scores won't change until I run a new report on the 24th.  TU has been phenomenal with the EE updates.

Now gonna attempt some late payment EE updates...more to come..all 3 report different amount of lates..3, 4 and 5.

[DaMajor]

Updates 2/24

FICO SCORE 8:

EQ:  713. TU:  703. EX:  705

MORTGAGE 542

EQ:  684.(+14)  TU:  712. (+16)  EX:  655 (+26)

Two cards yet to show updated for total payoff.   They should show in next few days and hopefully will bump these even more.

[DaMajor]

Preapproval Mortgage Letter from Navy Federal!  Navy said our combined middle was 701.   I'll run it again on my next free report and update.  Of course, proof is in the pudding when you actually go to underwriting.  Hard part is finding a property.

Update:  March 12th

FICO SCORE 8:

EQ:  730 +17. TU:  740 +27. EX:  725 +20

I opted to do CLI request on various cards instead of applying for any new credit lines just to help utilization even more.

Discover:  +$300

Capital One:  +$300

Lowes:  + $5K

Sams Club: + 2.5K

Sams Club MC :  + $3K

[DaMajor]

Score updates 5/23

Brought tota utilization down to about 20%

Cleaned up personal data

Used EE with Transunion

Still have 2 charge offs on EQ and EX plus 90 day lates which should all drop off in next 6 months

FICO 8: (+ CHANGES SINCE JANUARY)

EQ: 744 (+88) TU: 750 (+86) EX: 735 (+73)

FICO 542 (+ CHANGES SINCE JANUARY)

EQ: 719. (+63) TU: 732. (+103) EX:  706 (+90)